EXETER CHIEFS to sell non rugby asset

[Lwasp]

To be fair to Chiefs there is a big difference between having an asset to sell to cover your debts and having nothing. If they do sell their share in a £40m hotel and that sees the Rugby club become debt free then they are hardly in the same sea as Wasps, let alone the same boat.

We owned nothing so had nothing to sell.

[Neils]

Who wants to be fair to Baxter's Mob? The head cheerleaders in kicking Wasps.

[Bloke in North Dorset]

To be fair to Chiefs there is a big difference between having an asset to sell to cover your debts and having nothing. If they do sell their share in a £40m hotel and that sees the Rugby club become debt free then they are hardly in the same sea as Wasps, let alone the same boat.

We owned nothing so had nothing to sell.

Maybe.

Presumably that investment is yielding a return and that return is being used for the benefit of the club in some way, otherwise why make it?

After they've sold the asset and paid off the debt they need to be able to invest the residual and hope they get a return equivalent to the old return less the interest payments, otherwise they're going to have to cut costs somewhere.

And in the current financial situation who's going to buy the asset at a value they have in mind and where are there investments that will provide the sort of regular, guaranteed income stream they're likely to be looking for?

I don't bear them any malice, but if I was one of their supporters having seen what we and Worcs have just been through I'd be a tad concerned.
 

[W2APS]

Was the stand expansion part of the same project (is the hotel under the stand that was increased?)

The hotel is a full size stand alone building just next to the stadium complex site. Very easy to spot from the motorway. The idea was to home the academy players there alongside the normal hotel guests.

[NellyWellyWaspy]

To offer to sell something is not the same as selling it and having the cash in hand.

[St Bruno]

And I don't believe for one moment that the hotel is worth £40 million.

[Skippy]

…especially in the current economic climate.

[Shugs]

The big question is if Exeter are having to sell off assets to pay off the loans what are the others doing (well those for whom it isn’t pocket change to their owners).

[Vespula Vulgaris]

I am reliably informed that at least one other club is having big problems financially right now.

This isn't finished yet.

[Rossm]

I am reliably informed that at least one other club is having big problems financially right now.

This isn't finished yet.

9 club league anyone?

[Shugs]

Depends who it is. If it’s Falcons they’ll just cut them adrift and go with 10 - solves their problem for them.

[NellyWellyWaspy]

I am reliably informed that at least one other club is having big problems financially right now.

This isn't finished yet.

It may be that one more is having 'big' financial problems, but a total of 5 are or have been having communication with insolvency and (re)financing specialists. In no particular order (from the current table):

Gloucester
Exeter
Leicester
London Irish
Newcastle

A league of 6 anyone?

The issues faced are:

HMRC and DCMS now insisting on full payment and cancelling all previously agreed plans, and they are (apparently) not willing to wait for the sale of non-liquid assets. They are no longer using the 'threat' of winding up orders, simply now stating that if payment in full is not received by a certain date, including any penalties, then the winding up petitions are already drawn up and ready to be filed the following day.

Fuel bills, which are now massive for these grounds, are falling due, with suppliers threatening to switch off the power at stadiums.

Falling gate receipts (season ticket money having already been spent) coupled with massive drop off of food and drinks revenues have left clubs projected to be unable to pay staff at the end of this month, let alone players.

Cancelled fixtures (Worcester and Wasps) have hit certain clubs very hard.

Clubs are projecting that they may also need to refund season ticket money as there will now be less games.

Each club that fails makes some of this even worse.

In my mind, a near total collapse is needed to make a full reset. The players will still be there after the dust has settled (mostly). The stadia will still be there. The fans will still be there. We can hope that the RFU will not be.

The true night of the long knives is yet to come. Sitting where I am right now, with Wasps looking like a very dead old bird, I don't care.

My two local clubs (Shipston and Stratford), are both doing OK.

[Bloke in North Dorset]

I am reliably informed that at least one other club is having big problems financially right now.

This isn't finished yet.

9 club league anyone?

Eight would be better, then they could split in to 2 leagues of 4 and have a play off for the top of each league at the end.  No chance of player burn out, plenty of time for England training camps and internationals.  Plenty of p share money to go round. Obviously no relegation, it might bring in a financially unstable team.

What could possibly go wrong

[Bloke in North Dorset]

NWW’s scenario is not far fetched. There must be some seriously worried Finance Directors.

When I quipped about Phoenix Wasps perhaps It should have been Phoenix Rugby Union.

[WonkyWasp]

Very short season.